Bitcoin, the leading cryptocurrency, recovered after a brief dip below $80,000 and rose above $83,000.
While the future direction of BTC is a subject of speculation, the Federal Reserve’s October interest rate decision and stance are being closely watched in the short term.
While uncertainty continues for BTC at this point, HTX’s chief analyst Cloud has shared his current situation and expectations.
The $80,000-$84,000 Range Stands Out for Bitcoin!
The analyst stated that in the short term, the focus for Bitcoin is on the US Federal Reserve’s (FED) interest rate decision, and that he expects BTC to move sideways in the $80,000-$84,000 range before the FED decision.
Cloud added that the market monitors macroeconomic developments and ETF flows to determine direction.
According to the analyst, while net outflows from spot Bitcoin ETFs over the past two weeks have increased selling pressure, the continued decrease in the amount of Bitcoin held on exchanges is supporting the market. The fact that long-term investors are also refraining from large-scale selling helps to balance buying and selling pressure.
Because of this outlook, Bitcoin is expected to remain within a specific price range of $80,000-$84,000 until the Fed’s interest rate decision. However, high funding rates and continued demand for put options indicate that the downside risks are somewhat higher in the short term.
Bitcoin: $84,200 and $79,800 to Watch!
The analyst stated that an upward breakout is still possible, noting that three conditions are necessary for this rise to be confirmed. These conditions are: “Bitcoin closing above $84,200 daily, net inflows into spot ETFs exceeding $500 million over the three-day period, and funding rates remaining at or below 15 percent.”
The analyst pointed to the $79,800 level as a potential target for a downward movement. He listed three conditions for the downward trend to gain momentum: “Bitcoin needs to fall below $79,800, weekly ETF outflows need to exceed $500 million, and net Bitcoin inflows to exchanges need to resume.”
However, the analyst noted that Bitcoin has found support at the $80,000 level several times in the past month, suggesting that any potential declines below this level may be temporary. Finally, the analyst added that the Federal Reserve’s interest rate decision and investors’ expectations regarding monetary policy will be decisive in determining the market’s direction.
*This is not investment advice.
Continue Reading: Attention Bitcoin (BTC) Investors! Analyst Reveals Expectations Ahead of FED Meeting, Shares Two Critical Levels He’s Monitoring!